Are you a sleep-deprived parent battling night wakings, seeking help from a sleep consultant but wondering if the services are covered by medical insurance? While generally not covered by medical insurance, the good news is that sleep consulting and a sleep training program may be eligible for reimbursement through a Flexible Spending Account (FSA) or Health Savings Account (HSA). In this blog post, we'll guide you through the process of using your FSA or HSA to cover sleep training services regardless of sleep training methods.
Understanding FSA and HSA Benefits
A Flexible Spending Account (FSA) is a tax-advantaged account that allows you to set aside pre-tax dollars to cover eligible medical expenses. While FSAs are often associated with traditional healthcare services, certain "non-traditional" offerings, such as breast pumps, hearing aids, and yes, sleep coaching, may also be eligible for reimbursement.
This is money that you set aside through your employer that is tax exempt. You can then purchase a sleep consulting service or other offering, submit your receipt to the plan provider and be reimbursed. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.
With an FSA, you submit a claim (paid invoice) to the FSA (through your employer) with proof of the expenditure. The invoice requires the company EIN number, the patient name, dates of service and description. You then, you’ll get reimbursed for your costs. Ask your employer about how to use your specific FSA. Source: https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/
A Health Savings Account (HSA), sometimes called a health spending account or health care spending account, is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan. The funds contributed to an HSA are not subject to federal income tax at the time of deposit.
Source: https://www.healthcare.gov/high-deductible-health-plan/hdhp-hsa-work-together/
Using FSA/HSA Funds for Baby Sleep Coach Services
FSA funds require submission of the paid invoice to the benefit plan. The receipt needs to have patient name, date of services and outline of the services.
Coverage via an HSA generally requires more leg work. It requires you to show that the expense was medically necessary.
Here's a step-by-step guide to using your HSA for sleep consulting services:
1. Claim Medical Necessity
The key to HSA reimbursement lies in establishing the medical necessity of sleep consulting services. If you believe that the baby sleep consulting services address a specific medical need or concern related to your child's sleep, it could be eligible for reimbursement.
- Reach out to your HSA administrator or your human resources department to inquire about the eligibility of baby sleep consulting services. They can provide insights into your specific plan's requirements.
- Speak to your pediatrician or healthcare provider and request a "letter of medical necessity." Sleep deprivation and sleep issues for you or your child can significantly impact sleep and quality of lie.
- Find the Right Coding for Services
Some HSA plans may require specific medical codes for reimbursement. While baby sleep consultants may not use traditional medical codes, it's essential to communicate with your HSA administrator to understand any coding requirements or alternatives. Some options to explore are: "Newborn care" or "Health institute fee." Under the health institute fees, sleep consulting can be covered with a letter of medical necessity (LMN). This can be obtained from a medical professional. But beforehand, make sure to check with your HSA administrator and ensure that the fee and expense will be covered. - Document Everything
Keep detailed records of your interactions with the sleep consultant, including receipts and invoices. If required by your HSA plan, be prepared to provide clear documentation outlining the medical necessity of the services.
If you have an HSA debit card, you can simply use your HSA debit card to pay for sleep training services.
How to Chose a Provider
Sleep consulting is an unregulated profession unlike. Meaning there's no governing body with a professional membership who monitors membership, professional conduct and applicable laws. The word "certified" can be used anywhere but has little meaning in this field. Here at Helping Babies Sleep, we have a training certification program. It's 20 hours of study accompanied by an exam and submission of case studies to become "certified." But another program might have 1 hour of training to become "certified."
When you're looking for a sleep coach or sleep consultant to guide you, here are some good questions to ask:
1. How many years of experience do you have?
2. Do you have a healthcare and/or psychology background?
3. How many families have you helped?
4. What is your success rate and how do you handle cases that don't go according to the sleep training plan?
5. How will support be provided?
The possibility of sleep consulting services being more accessible through FSA reimbursement is exciting news for parents. Your child's sleep is a vital component of their overall health, and sleep consultants are here to support you every step of the way.
If you have any questions or need additional information, don't hesitate to reach out to your sleep consultant or FSA administrator. With the right guidance and documentation, you can take advantage of your FSA or HSA benefits to cover the cost of sleep training services and help your child develop healthy sleep habits while you recover your sleep. At Helping Babies Sleep with provide in-home appointments, virtual consultations and sleep solutions to meet your family's values.
